IAG Narrows Loss as Iberia Revamp Takes Effect

Airline Group Says Turnaround Plan Should Lead to Sustained Profitability

LONDON—British Airways parent International Consolidated Airlines Group said Friday it was showing persistent progress in its turnaround plan that should lead to sustained profitability and a return of dividend payouts, as the company reported a smaller loss for the traditionally weak first quarter.

IAG reported a net loss of €184 million ($254.7 million) in the first three months of the year, compared with a loss of €630 million in...